California Healthline: Access at Issue in Provider Cut

by David Gorn

A new Assembly bill would exempt one type of skilled-nursing provider from state-imposed Medi-Cal reimbursement cuts. The 10% reduction is being challenged in federal court and has not taken effect.

The new bill, AB 900 by Assembly member Luis Alejo (D-Salinas), would exempt hospital-based, acute-care skilled nursing facilities from the cut. Other providers could be included in the legislation, but so far the bill deals only one kind of provider.

Hospital-based skilled-nursing facitlies were singled out because the cuts will affect them more than other Medi-Cal providers, according to Jan Emerson-Shea, vice president of external affairs for the California Hospital Association.

The challenge here is that the cut to us has been portrayed as 10%, but it is really 25% or even 30%, and those acute-care, distinct-part nursing facilities are the only providers getting that kind of cut,” Emerson-Shea said. “For some reason, these cuts are based on rates in effect in 2008 and 2009. So it actually comes out to be a 25 or 30% reduction.”

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  • LAAAC is managed by St. Barnabas Senior Services; Funded, in part, by Archstone Foundation.
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